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01. Introduction <br />The talent shortage is here, and likely to become more severe <br />Significant talent shortages have been on the horizon for years, and the effects of the COVID-19 Pandemic accelerated <br />many of the workforce transitions and talent misalignments seen on our horizon in 2018. In 2022, demographic trends <br />and the complex economic environment nationwide collided to create the tightest job market in history, and the impacts <br />of that tightness are still being felt. We still see a “great reshuffle” playing out as talent seeks higher wage opportunities <br />more closely aligned to areas of interest and skill, and early retirements, lack of access to childcare and other dependent <br />care, illness, entrepreneurship and new business starts are cited as the top influencing factors limiting our available <br />talent pool.1 Minnesota has one of the most severe talent shortages in the nation, with about 50 available workers for <br />every 100 open jobs—not even taking into account skill misalignments.2 In short, we don’t have workers to spare. <br />The needs and expectations of talent are shifting <br />3 Washington County <br />Labor Supply Study <br />March 2023 <br />1. US Chamber of Commerce. Understanding America’s Labor Shortage. <br />Feb 22, 2023. 2. US Chamber of Commerce. Understanding America’s <br />Labor Shortage: The most Impacted States. Feb 1, 2023. <br />In the same way that the COVID-19 Pandemic impacted the way that businesses operate, it also impacted the <br />expectations of workers. Talent that had postponed retirement began exiting the workforce at a more rapid pace, and <br />remote and hybrid work environments led to shifts in commute patterns that have remained with our communities even <br />after stabilization. In addition, the demographic pendulum has swung with an aging local workforce and a swelling of a <br />more diverse younger generation on the cusp of entering the world of work.